GBP/USD clings to multi-month low near 1.3700 on firmer US dollar

GBP/USD extends the preceding week’s delines and trades decrease on Monday.
Supply-chain disruptions, limp monetary restoration took a toll on sterling performance.
Broad-based US dollar good points preserve strain on GBP/USD.
GBP/USD edges decrease on Monday following the preceding week’s draw back momentum. The pair opened greater however failed to capitalize the upside momentum and skids in the direction of the multi-month low close to 1.3700.

As of writing, GBP/USD is buying and selling at 1.3709, down 0.23% for the day.

The motion in GBP/USD is particularly backed via the positive aspects in the greenback. Buoyed by using the better-than-expected monetary information and the issues about the speedy extend of the Delta variant of coronavirus instances globally pushed demand for the US greenback owing to its safe-haven appeal.

The US Dollar Index (DXY), which tracks the overall performance of the dollar towards its six main rivals, trades above ninety three beforehand of the FOMC two-day assembly later in the week.

On the different hand, the sterling remained on the again foot as traders remained frightened about the UK inflation growth. A greater inflation studying ought to pressure the Bank of England (BOE) to increase pastime fees and crunch the already sick economy.

The records launched in the past in the month published that the UK economic system grew with the aid of simply 0.1% in July, the tempo of the increase was once decrease than the 1% boom in the preceding month.

Meanwhile, US House of Representatives Speaker Nancy Pelosi warned Britain on destabilizing Northern Ireland’s (NI) peace and stated there will be no US-UK exchange deal earlier than the British authorities resolved Brexit disagreement with the European Union (EU).

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